The general ledger of Jackrabbit Rentals at January 1, 2024, includes the following account balances:

The following is a summary of the transactions for the year:
1. January 12 Provide services to customers on account, $62,400.
2. February 25 Provide services to customers for cash, $75,300.
3 March 19 Collect on accounts receivable, $45,700.
4. April 30 Issue shares of common stock in exchange for $30,000 cash.
5. June 16 Purchase supplies on account, $12,100.
6. July 7 Pay on accounts payable, $11,300.
7. September 30 Pay salaries for employee work in the current year, $64,200.
8. November 22 Pay advertising for the current year, $22,500.
9. December 30 Pay $2,900 cash dividends to stockholders.

Required:

1. Set up the necessary T-accounts and enter the beginning balances from the trial balance. In addition to the accounts shown, the company also has accounts for Supplies, Salaries Payable, Interest Payable, Dividends, Service Revenue, Salaries Expense, Advertising Expense, Interest Expense, and Supplies Expense.

2. Record each of the summary transactions listed above.
3. Post the transactions to the accounts.
4. Prepare an unadjusted trial balance.
5. Record adjusting entries. Accrued interest on the notes payable at year-end amounted to $2,500 and will be paid January 1, 2025. Accrued salaries at year-end amounted to $1,500 and will be paid on January 5, 2025. Supplies remaining on hand at the end of the year equal $2,300.
6. Post adjusting entries.
7. Prepare an adjusted trial balance.
8. Prepare an income statement for 2024 and a classified balance sheet as of December 31, 2024.
9. Record closing entries.
10. Post closing entries.
11. Prepare a post-closing trial balance.

Transcribed Image Text:

Accounts Cash Accounts Receivable Land Accounts Payable Notes Payable (due in 2 years) Common Stock Retained Earnings Totals Debits $ 41,500 25,700 110,800 $178,000 Credits $ 15,300 30,000 100,000 32,700 $178,000